708 E State Route 72

Rolla, MO 65401

$132,500D

2 bd · 1.0 ba · 952 sqft · Built 1941 · SingleFamily · Active · 171 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $985/mo
• Mortgage (P&I): −$695
• Tax + insurance: −$102
• HOA: −$0
• Vac / Maint / Mgmt: −$207
• Net cashflow: $-19/mo
• Annual: $-226/yr
• Cap rate: 6.12%
• Cash-on-cash: -0.61%
• DSCR: 0.97
• 1% rule: 0.74%
• Cash to close: $37,100

Investor read

• This is a 2-bed/1.0-bath single-family listed at $132k.
• At list price, monthly cash flow is $-19 ($-226/yr) — negative.
• To cash-flow at today's rent, offer at most $129k (2.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $98k (25.7% below list).
• It's been on market 171 days — a 12% lower offer ($117k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $98k (25.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $916 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#76 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing A-; Watch: crime D, commute F, employment D-.
• Rolla 31 (town): math 38% / reading 48% proficiency, ranked #118 of 324 in MO (top 36%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Mark Twain Elem. (math 57% / reading 57%, grade C+, #159 of 1,115 statewide, top 16%, 470 students, 45% FRL); Rolla Middle (math 37% / reading 46%, grade F, #163 of 391 statewide, top 44%, 837 students, 40% FRL); Rolla Sr. High (math 25% / reading 61%, grade F, #211 of 521 statewide, top 41%, 1,323 students, 34% FRL) — zoned schools at 40% FRL track the district average.
• Watch-outs: built in 1941 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+10.2%/yr); 271 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 162 units permitted in Phelps County in 2024 (83 in 5+ unit buildings).
• Phelps County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 4 sale attempts; this cycle's ask has dropped $17k (12%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.1% vs local median 3.5% in Rolla — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 171 days. Have you received any prior offers? Is the seller open to a 26% concession, seller financing, or rate buy-down credit?
• Built in 1941 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?